Firm Attributes and Tax Avoidance in Nigerian Listed Manufacturing Companies

Odunsi Oluwasegun Temitayo (), Adedeji Samuel Babatunji () and Alao Abdul-Azeez Adeniyi ()
Additional contact information
Odunsi Oluwasegun Temitayo: Department of Accounting, Postal: Olabisi Onabanjo University, Ago-Iwoye, Nigeria.,, https://jted.citn.org/
Adedeji Samuel Babatunji: Department of Accounting, Postal: Olabisi Onabanjo University, Ago-Iwoye, Nigeria.,, https://jted.citn.org/
Alao Abdul-Azeez Adeniyi: Department of Accounting, Postal: Olabisi Onabanjo University, Ago-Iwoye, Nigeria.,, https://jted.citn.org/

Journal of Taxation and Economic Development, 2024, vol. 23, issue 2, 68-80

Abstract: This study investigated the effect of firm attributes on tax avoidance among listed manufacturing companies in Nigeria. Ex-post facto design was employed in the study with secondary data being gathered from published annual reports of these companies from 2012 up to 2021. Hypothesis was tested using the Ordinary Least Squares (OLS) approach. The results portrayed a positive relationship between firm leverage (FIL) and tax avoidance, though this relationship was not statistically significant at 5 percent level (p > 0.05). This shows that big-sized companies among manufacturing companies quoted in Nigeria tend to be more tax aggressive. The study concluded that firm attributes do not significantly affect tax avoidance in these companies. Consequently, it suggested that the Federal Inland Revenue Service (FIRS) need to promote transparency in tax reporting by encouraging companies to disclose their tax planning strategies, particularly given the significant influence of larger boards of directors on tax behavior. Also, offering tax benefits by the government to firms that engage in sustainable practices, research and development, and employee training is important to steer profitable companies away from aggressive tax strategies and promote socially responsible business behaviour.

Keywords: Firm Attributes; Firm Leverage; Firm Growth; Capital Intensity. (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://jted.citn.org/home/journalvolume/28 Full text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:jotaed:0093

Access Statistics for this article

Journal of Taxation and Economic Development is currently edited by Rafiu Oyesola Salawu, Godwin Emmanuel Oyedokun and Mary-Fidelis Chidoziem Abiahu

More articles in Journal of Taxation and Economic Development from Chartered Institute of Taxation of Nigeria Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Akanbi ().